EU Investigates Chinese Imports of Key Amino Acid Amid Escalating Trade Tensions
Lysine plays a crucial role in both human and animal diets. The sole European producer of lysine is at risk of closure due to alleged dumping by Chinese manufacturers, the company lamented.
On May 23, the European Commission initiated an anti-dumping investigation into lysine imported from China amidst escalating trade tensions between the Chinese communist regime and Western nations. This development followed China’s recent anti-dumping probe into plastics imported from the West.
Lysine, an essential amino acid, is vital for various bodily functions, such as calcium absorption and collagen growth. While the human body cannot produce lysine on its own, it must be obtained through diet.
The complaint leading to the investigation was filed by French company Metex, the only lysine producer in Europe. Metex argued that Chinese dumping practices, supported by the regime, have severely impacted its financial stability.
Dumping involves flooding a foreign market with underpriced products, considered unfair by international standards.
The EU is considering implementing measures to counter the effects of these alleged unfair practices based on the findings of the anti-dumping probe.
Trade War Escalates
Recent actions by the EU include anti-dumping investigations into various Chinese imports, including electric vehicles, tinplate steel, medical equipment, and more. The US has also raised tariffs on Chinese goods due to industrial overcapacity and dumping practices.
China, in retaliation, launched an anti-dumping investigation into imported engineering plastic on May 19. The global amino acid market, dominated by China, Europe, and North America, has sparked competition resulting in fierce trade disputes.
Economist Davy J. Wong highlighted the significance of reducing dependency on Chinese industries. The US and EU must collaborate to pressure China to comply with trade regulations and international norms.
Amidst these tensions, China faces economic repercussions, including a shrinking market, affecting domestic employment and foreign exchange. The shift away from China as a key supplier poses challenges but is considered a necessary step to address unfair trade practices.
Collaborators Luo Ya and Chen Ting contributed to this insightful report.
